# Bus 630 Week 4

Topics: The Quarter at Tropicana, Material, Inventory Pages: 5 (713 words) Published: July 16, 2012
BUS 630: Managerial Accounting
Assignment Week 4
Prof. Aisha Meeks
May 7, 2012

(8-12)

|1) | | | | | | |Jessi Corporation | |Sales Budget | | |Quarter | | |1 |2 |3 |4 |Total | |Budgeted Unit Sales |12,000 |14,000 |13,000 |11,000 |50,000 | |Selling Price per Unit |× \$18 |× \$18 |× \$18 |× \$18 |× \$18 | |Total Sales |\$216,000 |\$252,000 |\$234,000 |\$198,000 |\$900,000 |

|Schedule of Cash Collections | | |Quarter | | |1 |2 |3 |4 |Total | |Accounts Receivable, Beginning |\$70,200 | | | |\$70,200 | |Quarter 1 Sales |\$140,400 |\$64,800 | | |\$205,200 | |Quarter 2 Sales | |\$163,800 |\$75,600 | |\$239,400 | |Quarter 3 Sales | | |\$152,100 |\$70,200 |\$222,300 | |Quarter 4 Sales | | | |\$128,700 |\$128,700 | |Total Cash Collections |\$210,600 |\$228,600 |\$227,700 |\$198,900 |\$865,800 |

Collections in the quarter of sales is 65%, therefore for the first quarter \$216,000 × 65% = \$140,400

In the quarter following the sale, collections are expected to be 30%, therefore \$216,000 × 30% = \$64,800

|2) | | | | | | |Jessi Corporation | |Production Budget | | |Quarter | | |1 |2 |3 |4 |Total | |Budgeted Units Sales |12,000 |14,000 |13,000 |11,000 |50,000 | |Add: Desired Ending Inventory |+2100 |+1950 |+1650 |+1850 |+1850 | |Total Units Needed |14,100 |15,950 |=14,650 |=12,850 |=51,850 | |Less: Beginning...

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